Merkel Takes a Swipe at Japan Over Yen

German Chancellor Uses Davos Speech to Say 'Central Banks Are Not There to Clean Up Bad Policy Decisions'

By

Harriet Torry And

William Boston

Updated Jan. 25, 2013 5:19 a.m. ET

German Chancellor Angela Merkel on Thursday stepped into a growing debate over the threat of a global currency war, taking a swipe at Japan's recent moves to weaken the yen and warning that political leaders must not use central banks to clean up their policy mistakes.

Weighing into the discussion at the annual World Economic Forum summit of executives and policy makers in Davos, Switzerland, Ms. Merkel echoed the increasing concern...